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    • Superclarkkent
    • By Superclarkkent 1st Dec 17, 12:27 PM
    • 25Posts
    • 15Thanks
    Superclarkkent
    Insolvancy Act Application
    • #1
    • 1st Dec 17, 12:27 PM
    Insolvancy Act Application 1st Dec 17 at 12:27 PM
    After some advice/intelligence please.


    My girlfriend rents a shared flat - she's lived there about 18 months and had signed a tenancy agreement through until June 2018 with the 'landlord'.


    Since living there, she has discovered that the landlord was in fact declared bankrupt (prior to her living there) and the property in in Trust (I think that's the right term). Landlord gets a portion of the rent and the rest of the rent goes to the Trustee.


    About a month ago, the tenants were informed that the Trustee was selling the property - they would likely sell with tenants in situ however this panicked the tenants a little.


    Upon speaking to the solicitor dealing with the case, they were told that the landlord actually had no legal right to be letting the property and that their lease was void, however because it was providing an income to the Trustee apparently nothing was done about this.


    Today they've received a letter enclosing an 'Insolvancy Act Application' and giving them 28 days to vacate the property. The cover letter states there is a hearing for possession on 8th January. It states the application was made on 7th November.


    As far as they are aware, nobody has served them notice - they've not received a Section 21, which as far as I'm aware is the first step in the process of eviction and should give them 2 months at which point the Trustee could apply for possession?


    I suppose this is all complicated by the fact that they are supposedly not supposed to be renting this property, but if the Trustee has been accepting rent form them, surely that is an admission by the Trustee that they accept the lease as being valid?


    If there's any more detail I can give let me know and I'll try to get the information.


    Thanks
Page 1
    • Comms69
    • By Comms69 1st Dec 17, 1:10 PM
    • 1,318 Posts
    • 1,072 Thanks
    Comms69
    • #2
    • 1st Dec 17, 1:10 PM
    • #2
    • 1st Dec 17, 1:10 PM
    After some advice/intelligence please.


    My girlfriend rents a shared flat - she's lived there about 18 months and had signed a tenancy agreement through until June 2018 with the 'landlord'.


    Since living there, she has discovered that the landlord was in fact declared bankrupt (prior to her living there) and the property in in Trust (I think that's the right term). Landlord gets a portion of the rent and the rest of the rent goes to the Trustee.


    About a month ago, the tenants were informed that the Trustee was selling the property - they would likely sell with tenants in situ however this panicked the tenants a little.


    Upon speaking to the solicitor dealing with the case, they were told that the landlord actually had no legal right to be letting the property and that their lease was void, however because it was providing an income to the Trustee apparently nothing was done about this.


    Today they've received a letter enclosing an 'Insolvancy Act Application' and giving them 28 days to vacate the property. The cover letter states there is a hearing for possession on 8th January. It states the application was made on 7th November.


    As far as they are aware, nobody has served them notice - they've not received a Section 21, which as far as I'm aware is the first step in the process of eviction and should give them 2 months at which point the Trustee could apply for possession?


    I suppose this is all complicated by the fact that they are supposedly not supposed to be renting this property, but if the Trustee has been accepting rent form them, surely that is an admission by the Trustee that they accept the lease as being valid?


    If there's any more detail I can give let me know and I'll try to get the information.


    Thanks
    Originally posted by Superclarkkent


    The tenancy is valid. They have been paying rent and receiving accommodation for it.


    They should attend and notify the court that they are tenants in the property and have a contract until June 18
    • Superclarkkent
    • By Superclarkkent 1st Dec 17, 1:56 PM
    • 25 Posts
    • 15 Thanks
    Superclarkkent
    • #3
    • 1st Dec 17, 1:56 PM
    • #3
    • 1st Dec 17, 1:56 PM
    I've just read the Trustee's witness statement which is enclosed with the letter.


    The Trustee says that he notified the bankrupt that they were not allowed to let the property in June 2017. He then follows this up saying that he received £1000 pcm in rent from the tenants but because the lease was entered into in July 2017, it is invalid.


    This to me makes no sense - if he admits to receiving rent each month then how can he claim the tenants do not have any kind of rights or protection?


    Surely he has to serve a S21 before he can do anything else?
    • Comms69
    • By Comms69 1st Dec 17, 2:09 PM
    • 1,318 Posts
    • 1,072 Thanks
    Comms69
    • #4
    • 1st Dec 17, 2:09 PM
    • #4
    • 1st Dec 17, 2:09 PM
    I've just read the Trustee's witness statement which is enclosed with the letter.


    The Trustee says that he notified the bankrupt that they were not allowed to let the property in June 2017. He then follows this up saying that he received £1000 pcm in rent from the tenants but because the lease was entered into in July 2017, it is invalid.


    This to me makes no sense - if he admits to receiving rent each month then how can he claim the tenants do not have any kind of rights or protection?


    Surely he has to serve a S21 before he can do anything else?
    Originally posted by Superclarkkent


    It's not invalid, it's just an opinion, ignore it.


    They've been tenants 18 months, well before any of this started at any rate
    • agrinnall
    • By agrinnall 1st Dec 17, 3:35 PM
    • 18,782 Posts
    • 14,486 Thanks
    agrinnall
    • #5
    • 1st Dec 17, 3:35 PM
    • #5
    • 1st Dec 17, 3:35 PM
    Obviously the Trustees don't know the law so you should be wary of anything you receive from them. Might be worth getting some advice from Shelter on how to respond to them to set them straight.
    • G_M
    • By G_M 1st Dec 17, 4:15 PM
    • 42,346 Posts
    • 49,200 Thanks
    G_M
    • #6
    • 1st Dec 17, 4:15 PM
    • #6
    • 1st Dec 17, 4:15 PM
    Read


    * Repossession: what if a LL's mortgage lender repossesses the property?

    (for 'mortgage lender', substitute 'Official Receiver'.
    • Superclarkkent
    • By Superclarkkent 1st Dec 17, 4:36 PM
    • 25 Posts
    • 15 Thanks
    Superclarkkent
    • #7
    • 1st Dec 17, 4:36 PM
    • #7
    • 1st Dec 17, 4:36 PM
    Thank you G_M, that's very helpful.
    • G_M
    • By G_M 1st Dec 17, 5:01 PM
    • 42,346 Posts
    • 49,200 Thanks
    G_M
    • #8
    • 1st Dec 17, 5:01 PM
    • #8
    • 1st Dec 17, 5:01 PM
    You're welcome.

    (the 'Thanks' button is under each post)
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